"These three companies allegedly lured consumers with promised monthly savings that turned out to be fictional," said acting Attorney General John J. Hoffman said in a statement. "Even worse, consumers who had hoped to save money instead saw their bills increase to unconscionable levels."

The state received hundreds of complaints from people like Gail Tornquist, a resident of Canal Walk in the Somerset section of Franklin, who switched to Palmco only to get a bill in February for $913.

"Needless to say, we were in shock," Tornquist said, adding that the company offered a 10 percent discount, but she and her husband decided to cancel their agreement.

After switching, their bill in May was $270.

"Quite a difference," she said

In March, a Palmco spokeswoman blamed the "extremely cold" winter for driving up demand and producing spikes in market prices, which were reflected in the bills of customers who had variable-rate bills.

But the state on Wednesday said the three companies deceived customers through misrepresentations about "competitive" monthly prices and guarantees that consumers would see lower monthly electric or natural gas bills.

But instead of the savings, consumers saw their energy bills skyrocket this past winter when Palmco, Hiko and Systrum charged more than the consumers' previous suppliers.

Additionally, Palmco and Hiko have been accused of "slamming" customers – signing them up without their consent.